Exercise 3 Homework Company Information Item to Classify Labor Cost Labor Usage Fixed Cost spending Fixed Cost Sales volume Sales price Material cost Material usage Driver hours hours dollars dollars units dollars dollars pounds Amount Standard Actual per hour S 10.00 $ 9.60 total 61,000 61,800 total $ 400,000 $ 390,000 per unit S 3.20 $ 3.16 total 40,000 42,000 per unit S 3.60 $ 3.63 per pound S 2.90 $ 3.00 total 91,000 90,000 Variance ? ? ? ? ? ? ? ? Favorable Unfavorable ? ? ? ? ? ? ? ? Actions to take: 1 Prepare the Standard Budget 2 Calculate the actual results. 3 Compute the variances Identify if the variances are favorables or unfavorable 5 Explain possible (logical) reasons for the variances (difference)